In a case involving insurance coverage, the Seventh Circuit considered the narrow issue of whether and to what extent the owner of a home in foreclosure has an insurable interest in the property after a judgment of foreclosure, after a judicial sale, and after expiration of all of the owner’s rights of redemption but before judicial confirmation of the foreclosure sale. The Seventh Circuit affirmed the district court’s finding that although the homeowner still held legal title to the property when it was destroyed by a fire, he had no legal right to redeem it from foreclosure or otherwise to retain it and, as a result, his only insurable interest was in the value of his temporary right of possession. (KIRSCH and JACKSON-AKIWUMI, concurring)
Federal 7th Circuit Court
Civil Court
Insurance Coverage